Trading Summary (June 15, 2001)

An earnings warning by market heavyweight Nortel Networks dragged the Toronto Stock Exchange down for the fourth straight day. The telecommunications giant announced that it plans to slash 10,000 jobs and predicted a $19.2-billion second-quarter loss. The TSE 300 composite index reacted to the news by falling 103.95 points, or 1.3%, to 7,816.1. The gold and base metal issues were swept up in the slide, falling 112.91 and 17.11 points, respectively.

Kinross Gold remained in investors’ sights, gaining a penny to $1.56 with more than 3 million shares changing hands, enough for a spot on the TSE’s most active list. Teck grabbed the last spot on the list with just more than 2.1 million shares traded. The stock fell 66, or 4.5%, to $13.99.

Other active gold issues included Barrick Gold, off 74, or 2.8%, to $25.64, and Placer Dome, 46 lower at $17.10. Among the few bucking the trend were Normandy Mining, up a quarter to $9.50, Glamis Gold, up a nickel to $4.50, and Hope Bay Gold, 2 pennies higher at 40.

Alcan led the country’s base metal miners with 1.4 million shares traded. The stock fell 25 to $61.75. Inco gained 13 to $26.90 on 942,00 shares and Sherritt International rose 24 to $5.75.

Some nice percentage gainers were Tucson-based AMT International Mining, up 25% to a dime, Caledonia Minerals, up 25% to 7.5, Caldera Resources, 21.4% higher at 8.5, and Kazakhstan Minerals, up 20% to 3.

Canada’s junior exchange drifted lower, led by a 1% drop in the mining-related issues. The Canadian Venture Exchange slumped 5.91 points, or 0.2%, to close at 3,324.24. The Mining Index plunged 70.67 points to close at 7,340.82.

Rhonda continued to gain ground on news that the first three holes of a planned five-hole drilling program over the Knife pipe cut significant intervals of kimberlite. The junior tacked on 5 to close at 60 on 213,442 shares. The company now confirms that the pipe has a drill-indicated east-west dimension in the order of 230 metres.

Shares in Philex Gold shot up 11 at the open, following the latest drill results from the Boyongan copper-gold prospect in the Philippines, but quickly settled lower, ending the day down 8 to $2.27 on 318,100 shares. Despite the encouraging results, a Yorkton Securities’ analyst voiced some concerns about the junior’s debt load.

Gulf International Minerals inched forward by 3 to end the day at 53 on 163,000 shares. The junior has construction teams working around the clock at the Aprelevka and Kansai gold mine sites in Tajikistan with the aim of beginning production by the fourth quarter of this year.

Kensington Resources remained in a narrow trading range, gaining 3 and closing at 89 with 346,410 shares traded. The company is a joint-venture partner in the Fort la Corne Diamond Project with DeBeers Canada Exploration, Cameco and UEM. The partners have approved a budget of $4.79 million for this year’s exploration.

Anooraq Resources took a bit of a breather after posting solid gains the past week. The Hunter Dickinson-led junior gained 1 to end the week at 75 on 94,000 shares. Anooraq announced a $3.2-million financing aimed at advancing the Platreef platinum-palladium property in South Africa.